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Environmental Orientation and Economic Performance: A quasi-experimental study of small Swedish firms

Marcus Linder (Institutionen för teknikens ekonomi och organisation, Innovationsteknik) ; Joakim Björkdahl (Institutionen för teknikens ekonomi och organisation, Innovationsteknik) ; Daniel Ljungberg
Business Strategy and the Environment (0964-4733). Vol. 23 (2014), 5, p. 333-348.
[Artikel, refereegranskad vetenskaplig]

This paper investigates the relationship between the environmental orientation and economic performance of small firms. We conduct a quantitative analysis on a sample of 299 environmentally oriented and all other small (2-49 employees) Swedish firms. We estimate the effect of environmental orientation on profit margin to examine how environmentally oriented firms perform in relation to non-environmentally oriented firms. To do this, we employ a quasi-experimental design in which we create a control group of non-environmentally oriented firms that are very similar to their environmentally oriented counterparts. We use two measures of environmental orientation: 1) a third party classification, and 2) a self-assessment of environmental differentiation. The findings show a negative effect of environmental orientation on economic performance. Our contribution to the literature is in using a novel and more rigorous way to measure the relationship between environmental orientation and economic performance and providing implicit support for the existence of a causal link from economic performance to environmental orientation.

Nyckelord: Business case for sustainability, sustainable development, sustainable profit, reverse causality, environmental orientation, environmental innovation



Denna post skapades 2013-06-13. Senast ändrad 2017-09-14.
CPL Pubid: 178381

 

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Institutioner (Chalmers)

Institutionen för teknikens ekonomi och organisation, Innovationsteknik (2005-2016)
Institutionen för ekonomi och samhälle, Innovation and Entrepreneurship (IIE) (GU)

Ämnesområden

Ekonomi och näringsliv

Chalmers infrastruktur

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